© Reuters. Spanish fashion retailer Mango CEO Toni Ruiz, CFO Margarita Salvans and CRO Cesar De Vicente attend the presentation of 2023 annual results at their headquarters, in Palau-Solita i Plegamans, near Barcelona, Spain March 11, 2024. REUTERS/Albert Gea
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BARCELONA (Reuters) -Fashion retailer Mango said on Monday its sales rose 19% to a record 3.1 billion euros ($3.39 billion) in 2023, after matching Spanish rival Zara’s strong expansion in the United States.
Barcelona-based Mango said it exceeded its forecast of surpassing 3 billion euros in sales by offering fashion trends faster than competitors thanks to having suppliers near to its main logistics centres in Spain and factories in Asia.
Its in-house design has a firm focus on party wear and fashion pieces for upmarket shoppers who are less sensitive to higher prices in a global fast-fashion industry where the rapid growth of newer online players such as China-based Shein is putting pressure on competitors with bargain prices.
Mango has positioned itself more as a premium retailer and has higher prices than Inditex-owned Zara and Sweden’s H&M in some party pieces, retail intelligence company EDITED said.
The biggest price rises are in dresses, where average in-stock prices grew 46% for the 2024 spring collection versus two years ago in markets such as the U.S., according to EDITED.
Mango’s online sales account for a third of its total revenue.
Its net profit rose to 172.1 million euros, from 81 million euros in 2022, CEO Toni Ruiz said at a press conference.
Mango is following in the footsteps of the world’s largest listed fast-fashion group Inditex (BME:), which is also expanding in the U.S.
The smaller Spanish group reported double-digit sales growth over the Christmas period in the U.S., which has become one of its top five markets.
($1 = 0.9146 euros)
